Google CEO Sundar Pichai has announced that the company is going to cut a total of 10% jobs in managerial roles, directorial roles and Vice Presidents roles. Google is reducing its workforce amid rising competition in AI from OpenAI.
Sundar Pichai stated that about a 10% reduction in managers, directors, and vice presidents at Google will be done. A Google spokesperson has revealed that affected management roles have been transformed into non managerial position whereas others are completely eliminated.
Reason behind Google's job cuts:
These changes are made by the Google over the past couple of years in order to become more efficient. Google has been focusing on improving its efficiency for over 2 years. In September 2022, CEO Pichai had announced an aim to make Google 20 per cent more efficient. Following this, in January 2023, just few months later the company implemented layoffs and cut almost around 12,000 jobs.
Sundar Pichai said, “This is difficult for any company to go through. At Google, we really haven't had a moment quite like that in 25 years, it became clear that if we didn't act, it would have become worse. It’s time to update what Googleyness means for today’s Google.”
This aim of increasing efficiency has come as the company is facing competition in artificial intelligence with rivals like OpenAI as it has introduced products that can challenge Google’s leadership in areas such as search. Its online search business has accounted for more than 57 per cent of its revenue last year.
Google has also responded by introducing generative AI features in its products as well as with the launch this month of Gemini 2.0, its most advanced AI model till date. CEO has said that the new AI models will be designed to understand and make decisions about the world.